We recently published a list of 12 High Growth Oil Stocks to Buy. In this article, we are going to take a look at where Matador Resources Company (NYSE:MTDR) stands against other high growth oil stocks to buy.
The oil and gas sector remains a cornerstone of the global economy, driving industries from transportation to manufacturing. Despite the accelerating shift toward renewable energy, oil continues to account for a substantial share of the world’s primary energy supply. According to the International Energy Agency (IEA), global oil demand is projected to increase by approximately 3.2 million barrels per day by 2030 compared to 2023 levels.
Technological Advancements:
Technological advancements have revolutionized oil exploration and production, delivering measurable improvements in efficiency and cost reduction. Innovations in hydraulic fracturing and horizontal drilling have significantly boosted U.S. shale production. The Energy Information Administration (EIA) reported that U.S. crude oil production has reached approximately 13 million barrels per day in recent years. These technologies have made previously unprofitable reserves economically viable, enhancing the industry’s resilience.
US Crude Oil Production:
The U.S. Energy Information Administration (EIA) further projects that U.S. crude oil production will average 13.6 million barrels per day (b/d) in 2026, an increase from the 13.2 million b/d recorded in 2024. This growth is primarily driven by enhanced efficiency in drilling operations and increased output from the Permian Basin, which is expected to account for over 50% of U.S. crude oil production by 2026. In addition to U.S. growth, global liquid fuel production is expected to increase by 1.7 million b/d in 2025, according to EIA. This is driven by both the relaxation of OPEC+ production cuts and further growth from non-OPEC countries such as Canada, Brazil, and Guyana.
Emerging Markets:
Emerging markets are poised to be the primary drivers of future oil demand. India and other emerging Asian economies are anticipated to contribute a combined 500,000 barrels per day to the increase in demand. This surge is largely attributed to the expanding middle classes and the increasing energy needs of developing economies.
Margers and Acquistion:
Concurrently, the oil industry is undergoing significant consolidation. Recent mergers and acquisitions have been valued at $150 billion according to Enverus Intelligence Research, as companies seek to streamline operations, expand reserves, and harness economies of scale.
Our Methodology
To compile a list of the 12 High-Growth Oil Stocks to Buy, we first used the Finviz stock screener to identify oil companies with over 20% revenue growth over the last five years. We then cross-checked the data on Reuters to verify financial health and growth potential before finalizing our selection. Finally we ranked these companies according to their revenue growth over the last five years.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A pipeline snaking its way through the hills and valleys of the Delaware Basin.
Matador Resources Company (NYSE:MTDR)
Revenue growth past 5 years: 28.93%
Matador Resources Company (NYSE:MTDR) is an independent energy firm focused on the exploration, development, production, and acquisition of oil and natural gas resources in the United States.
In December 2024, the company completed the contribution of its subsidiary, Pronto Midstream, LLC, to San Mateo Midstream, LLC, aiming to streamline midstream operations and enhance efficiency. Additionally, Matador Resources Company (NYSE:MTDR) secured an increase in its borrowing base under its credit facility, improving its financial flexibility and supporting future growth. These strategic developments reinforce the company’s commitment to optimizing its Delaware Basin operations while maintaining a strong balance sheet.
Matador Resources Company (NYSE:MTDR) delivered a record-setting full-year 2024, with net income of $885.3 million up 5% from 2023 and Adjusted EBITDA of $2.3 billion up 24% from 2023. The company generated $2.25 billion in operating cash flow, a 20% increase year over year, and $807.3 million in adjusted free cash flow, a 75% jump year over year. Matador Resources Company (NYSE:MTDR)’s production surged, averaging 170,751 barrels of oil equivalent per day for the year, up 20% from the previous year, with oil production at 99,808 barrels per day, a 32% increase.
Overall, MTDR ranks 9th on our list of high growth oil stocks to buy. While we acknowledge the potential for MTDR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MTDR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.